Ankara:Precious metal prices have continued their downward trajectory for the second consecutive month, primarily influenced by rising oil prices, a strengthening US dollar, and concerns about a global economic slowdown, which have collectively deterred investors from commodities.

According to Anadolu Agency – English, the volatility in commodity prices has been exacerbated since the outbreak of the US-Israeli war with Iran at the end of February, affecting metals such as gold, silver, platinum, and palladium. Gold, which began 2026 at $4,313 per ounce and reached a peak of $5,600 in January, experienced significant declines, closing October at $3,876 per ounce. This marks the first instance of gold dipping below $4,000 since July.

Silver has experienced a similar pattern, starting the year at $71 per ounce and falling to $49.1 by the end of October, marking its first dip below $50 since November 2025. Industrial metals like platinum and palladium have also seen substantial declines, with platinum closing October at $1,434 and palladium falling to $980, its lowest since June 2025.

Zafer Ergezen, a futures and commodity markets expert, indicated that high oil prices have reinforced inflation expectations, driving up interest rates and encouraging investors to seek risk-free returns, thereby impacting demand for gold and silver. Ergezen noted that silver, used more in industrial applications than gold, is expected to see a steeper decline. Additionally, he highlighted the negative outlook for platinum and palladium due to their industrial use and the impact of global growth slowdown concerns.

The demand for electric vehicles has further reduced the demand for platinum and palladium, and despite a strong supply side, recovery for these metals may not occur soon if inflation and oil prices remain high. Ergezen suggested that the recovery for platinum and palladium will likely be weaker than silver, even if the war ends and oil prices decrease.